Kerala High Court: In a writ petition filed by Chempazhanthi Agricultural Improvement Co-operative Society (‘Society’) and its Managing Committee challenging the communication issued by the Assistant Registrar of Co-operative Societies, directing the Secretary to remove the flex board displaying the names and photographs of defaulting borrowers in front of their head office, Murali Purushothaman, J. noting that the Kerala Co-operative Societies Act and Rules do not provide for the display or publication of photographs and other details of defaulting borrowers as a mode of recovery, said that the borrowers cannot be coerced into repaying loans through threats of reputational damage or invasion of their privacy.
The board put up by the Society contains the names of 1,750 defaulting borrowers, along with the loan amounts due and their photographs. According to the Society, there is nothing illegal or improper in displaying a board containing the details of the defaulting loanees. Further, it is submitted that, following the display, recovery efforts have been progressing, with the borrowers approaching the Society to close their loans.
The Court noted that the Kerala Co-operative Societies Act and Rules provides for various modes of recovery of debts due to the Co-operative Societies, execution of orders and awards including attachment and sale. The Act and the Rules do not provide for the display or publication of photographs and other details of defaulting borrowers as a mode of recovery.
The Court said that the borrowers cannot be coerced into repaying loans through threats of reputational damage or invasion of their privacy. Specifically, the publication or display of photographs and other personal details of defaulting borrowers in public constitutes an infringement on their right to live with dignity and reputation. Such actions, the Court noted, amount to a deprivation of life and personal liberty, which can only be done according to a procedure established by law. In this regard, the display of photographs of defaulting borrowers violates their dignity, reputation, and fundamental right to life, as guaranteed under Article of the .
Regarding the contention based on the publication by “beat of tom-tom” under Rule 81 of the Kerala Co-operative Societies Rules, 1969, the Court stated that it is not required to consider the validity of this provision. Considering this, the Court observed that the practice of tom-tomming is an outdated and primitive method that is no longer suitable for the modern era.
[Managing Committee of Chempazhanthi v Assistant Registrar of Co-operative Societies, Writ Petition (C) No. 45919 of 2024, decided on 20-12-2024]
Advocates who appeared in this case :
For petitioners: P.N.Mohanan, C.P.Sabari , Amrutha Suresh, Gilroy Rozario
For Respondents: GP Resmi Thomas
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